All Forum Posts by: Calvin Lamb

Ali Boone I am interested in rental investing because I want the cash flow (flips scare me!). The appreciation of the area where I live has been very quick (I tend to think that the market in a lot of CA might be creating another mini-bubble), making cash flow properties harder to find. I'm still in the very early stages of research...Do you invest for monthly cash flow?

Hey all thanks for the great replies...

Jared Adamson Yes, we actually signed the listing agreement with the Realtor last night. It's is probably most suitable for a small developer who is interested in splitting the lot or using the land for commercial purposes.

Jameson Triplett We have a couple reasons for selling:

1. The rapid appreciation our market has seen will enable us to make a nice profit after living in the property for 2 years. We had no trouble finding renters (in fact, in two years it has been vacant for all of 6 days!). The profit will allow us to make a down payment on another primary residence and have some money to make another investment.
2. The property is on a busy street, which is not the most ideal situation for raising my first child (due in Jan. '14).

Lucas Hall Thanks! I have really just started researching it...that's how I found BP. So far, TX looks very promising.

Paul Timmins Thanks for that great list Paul. I noticed 2 of the top 3 large city developing markets are in Texas.

Not necessarily. I'm not 100% sure on this, but I think if it is owner occupied you can go with conventional financing for as little as 5% down. They might still charge PMI but I believe you can get it removed (and therefore, your monthly mortgage payment reduced) after you have paid it for a certain period of time or if the property appreciates enough to have 20% equity (whereas FHA financing does not allow PMI to be removed). Rates are low right now but they appear to be headed up, so I personally would not make a plan contingent upon refinancing anytime soon. Just something to think about...your lender or a local bank could give you some pro's/con's of FHA vs Conventional financing.

Hey @Daniel Bowden,

Welcome to BP! I'm 26 and I'm a fairly new investor myself, however, I started out by doing exactly what you are talking about doing. My first home (which my wife and I bought 2 years ago) was considered a 'duplex' in the eyes of the bank...however, it was actually a larger lot with 2 homes on it (located in a suburb). We put 3.5% down (using an FHA loan) and have lived in one of the homes for the past 2 years with the tenants on the back half paying half our mortgage. When looking for a duplex, don't forget to consider the possibility of 2 homes on 1 lot...some good keywords would be things like 'granny flat' or 'in-laws quarters'. You could even opt to have a property manager and the tenants wouldn't necessarily have to know that the owner was their next door neighbor!

One thing to consider on the FHA loans: When putting down only 3.5% they require private mortgage insurance (PMI), which can really affect the cash flow. For instance: the PMI on our property is more than $300/month. FHA recently changed the rules so that all new FHA loans now require PMI for the LIFE of the loan. Just something to consider...

Again, welcome to BP.

Hey All!

My name's Calvin Lamb, I live in a suburb of Sacramento, CA called Orangevale. I have 1 deal under my belt: a 2-homes-1-lot in which I have lived in 1 home and landlorded the 2nd one for the past 2 years. I'm in the process of selling and the profit should give me a good starting point for my next opportunity...While doing research for my next deal I found BP! What a great community and resource for investors. I am still doing research but I think my next property (besides a primary residence for my growing family) will be a multifamily in a more landlord friendly state. :P

I'm looking forward to connecting with you all!

Wow. I am a N. CA resident with 1 deal under my belt here but stories like this are why I am considering another market for my next deal.

Good luck to you Will.